Copper "being lined up outside some buildings" not good.....

[camtender]

http://www.zerohedge.com/news/nickel-an ... d-coppered

The conundra continue to mount up around the world as central planning efforts dislocate asset-values from reality wherever one looks. Nowhere is the juxtaposition of hope-and-fear more evident than in the industrial metals. We have discussed the reality of Iron Ore, and the unreality of China stimulus (funded or unfunded) bringing the excess inventory back from the edge ad nauseum but, as the WSJ notes, the stacks of copper slabs inside the warehouses of Shanghai last month grew by 20% since July. In fact, so much copper has been sent into storage that it is being lined up outside some buildings as "there's much more metal than we'd expected," and some would see this huge inventory growth as a signal of "people's uneasiness about Chinese growth." However, sure enough, copper prices are soaring - on the back of expectations that inventories are so high that the PBoC will step in with some stimulus and all will be well in the world again. While Deutsche Bank opines "any rally in copper prices based on expectations will likely not be sustainable," the alternate perspective, based on hope and dreams is that "just a couple of months of better demand - it will quickly change the perception of surplus to tightness." Meanwhile, the effervescence of central-bank-driven exuberance in prices has driven the 'value' of a good-old-US-Nickel up to 5.2 cents (its highest in four months).



Inventories soaring... and prices soaring... makes perfect sense...



Meanwhile, the central-planners' exuberance has 'helped' the value of base metals so that the 'melt-down' value of a Nickel is back above 5c...



It's all good - the mal-investment will continue until morale improves

Charts: WSJ and Bloomberg

[John_doe]

give it 8 years.........

[everything]

China had this problem back in 2008 as well, they are very hesitant to slow their economy, looks like we all might be in for another global bust. Either that, or if they are getting it from a BRIC country, they could be in this web of trying to pump each others economies, and it's hard to turn off the spigot.

[scyther]

Can we capitalize on this? I know you can't really buy copper bullion at spot but do they have copper ETFs or something? I'm assuming the price drop would be temporary...

[penny pretty]

people are still stealing copper from INSIDE buildings in my neighborhood!